SmileDirectClub Investor Presentation Deck
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Gross margin.
Gross margin for the quarter was 74%, a 323bps
increase sequentially. Gross profit was up 15%
sequentially.
On COGS, we are making good progress on
manufacturing automation with our 2nd Gen
machines now live and producing approximately
60% of our aligners.
We plan to increase that percentage
significantly over the course of the year, and
we expect over 90% by the end of Q2.
As we have often stated, we believe streamlining
our cost profile through operational efficiencies,
will not only improve our margin profile, but more
importantly, will provide a consistently superior
customer experience that meets our expectations
and upholds our brand promise.
Our long-term gross margin target of 85% of
revenue remains intact.
smile
DIRECT CLUB
III.1
73%
70%
54%
Q1 2020
77%
Q3 2019
Gross margin %
Q4 2019
Q2 2020
70%
Q3 2020
74%
Q4 2020
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